The Federal Reserve's released minutes Wednesday solidifies what has become increasingly clear in the past few months:
It currently has no plans to continue tightening financial conditions in the U.S.
"In light of global economic and financial developments and muted inflation pressures, the committee could be patient as it determined what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the minutes read.
All three major U.S. indices, the S&P 500, Dow Jones Industrial Average and the Nasdaq were up slightly on the day, partially as a result of the Fed's minutes.
Plus, with some speculation of a trade agreement between the U.S. and China, stocks have been up of late. Now, many on Wall Street are starting to say some stocks in the U.S. are overvalued, as the average forward price-to-earnings ratio on the S&P 500 hits above 16, higher than the long-term historical average of 15.4. "Near-term stocks are quite overbought and a pullback could be warranted," wrote Ryan Detrick, senior market strategist at LPL Financial in a note out Tuesday.
Shares of CVS Health Cop. (CVS) , RealMoney's stock of the day, fell more than 8% to $64 apiece Wednesday, after an earnings beat was overshadowed by a weak 2019 outlook. Integrating Aetna, which it purchased in 2018, is proving difficult as competition in the business heats up. Still, CVS trades at a forward multiple below 10, much cheaper than its peers, suggesting it could be undervalued. To read more on CVS, see Kevin Curran's reporting here.